Answered: Which of the following statements is…

Which of the following statements is FALSE? a. There is a cause-and-effect relationship between the cost driver and the amount of cost. b. Over the long run all costs have cost drivers. c. Volume

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which of the following statements is FALSE?

There is a cause-and-effect relationship between the cost driver and the amount of cost.

Over the long run all costs have cost drivers.

Volume of production is a cost driver of direct manufacturing costs.

Fixed costs have cost drivers over the short run.

Definition Definition Total cost of procuring or producing a product or the cost that an individual or business owner undertakes for the manufacturing of goods.

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